Commonwealth Managed Investments terminates fund
Commonwealth Managed Investments (CMI) has terminated its Diversified Share Fund after shareholders failed to call a meeting to consider winding up the fund. CMI proposed to terminate the fund on June 1 in a meeting at the end of April if shareholders did not call a meeting before that date.
The fund lost more than 26 per cent of its value in the six months to December last year, or more than $19.5 million, according to the directors of CMI in their financial report on the fund last year.
Shareholders of the fund will be payed out on June 18 according to the net asset value (NAV) of the fund after the remaining assets of the fund are sold. The total NAV of the fund was more than $52.5 million, or 98 cents per share on May 25, when the fund was suspended from trading.
A statement from the Commonwealth Bank said that due to the decline in the size of the fund, it became uneconomical for CMI to continue to run the fund under the current fee arrangement.
AUTHOR
Benjamin Levy
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